On January 1, 2017, Milton's Marvelous Merchandise Inc. (a wholesaler) entered its fifth year of operations. Excerpts from the corporation's December 31, 2017 accounting records showed the following balances (all items are as of December 31, 2017 unless otherwise noted that and are the usual DR or CR balance for accounts of that type): Cash 25,000 Bad debt expense 7,000 income tax payable 5,200 Unearned revenue 17,000 Cost of goods sold 600,000 Loss on disposal of 12,000 equipment Accumulated depreciation, 15,000 Wages and salaries 80,000 equipment expense Accounts receivable 7,000 Retained earnings, Jan. 17,600 1, 2017 Interest expense 8,000 Inventory 112,000 Depreciation expense, 6,000 Prepaid expense 4,200 equipment Rent expense 11,000 Equipment 26,000 Income tax expense 65,000 Sales revenue 1,200,000 Accounts payable 5,600 Interest revenue 2,000 Advertising expense 3,000 Utilities expense 8,000